Two local shopping centers spin off from Simon group

Two South Florida shopping centers — Boynton Beach Mall and Royal Eagle Plaza, a strip center in Coral Springs — are set to depart from Simon Property Group and become part of a new spin-off company.

Simon Property Group, based in Indianapolis, announced Friday it was separating nearly 100 of its strip centers and smaller enclosed malls into an independent, publicly traded company called SpinCo.

The move will help create internal growth "through active asset management and redevelopments" and external growth via acquisitions and "selective new developments," Simon said in a press release.

The transaction is expected to be completed by mid-2014.

Though the South Florida centers will be part of a new company, they'll still receive many of the same services from Simon.

"Simon will continue to manage the Boynton Beach Mall and the Royal Eagle and it will be operated as business as usual and welcome all holiday shoppers," a Simon Property Group spokesperson said in a statement.

The Boynton mall's anchors include Macy's, Youfit Health Clubs and Dillard's. Royal Eagle Plaza, near the North University Drive and Wiles Road intersection, is anchored by Sports Authority.

"We believe we are creating a new company that has both a strong Simon heritage and all of the requisite tools to grow its business and succeed," David Simon, chairman and chief executive of Simon Property Group said in a statement. He will also serve as a director of the new company.

The transaction will allow Simon Property Group to focus on its global portfolio of larger malls, Simon said. The company owns or has an interest in more than 325 retail properties in North America and Asia, including Sawgrass Mills, Town Center at Boca Raton and Coral Square Mall.